Homeowner AI tools could help carriers and policyholders
First there was Hurricane Beryl, then Helene and most recently Milton that have wreaked havoc on homeowners across the Eastern U.S. Every year, hurricanes, tornadoes, blizzards, wildfires, earthquakes and more create big losses for insurance companies and increase homeowner churn rates.
Every disaster comes with media coverage of home damage and rising homeowners’ insurance rates. And since many (if not most) insurance providers only engage meaningfully with their policyholders at a time of loss or the annual renewal rate increase, they can only hope that their policyholders don’t actively shop the competition. This negative cycle continues every year impacting carriers, brokers, agents and consumers.
But it doesn’t have to be this way. Savvy insurance providers can now use new, digital-based strategies like home management platforms and homeowner AI tools to reduce claims costs and replace adversarial client relationships with value-based partnerships that will create value for all parties throughout the homeownership lifecycle.
Reduce claims costs with digital home management
Every insurance business wants their homeowners to be better prepared and protect their home from disasters and everyday losses caused by water, fire and a lack of ongoing maintenance.
Property-specific severe-weather alerts
The latest homeowner AI platforms integrate with the National Weather Service to provide homeowners with predictive, up-to-the-minute severe-weather alerts specific to their property address. This prepares homeowners for any disaster (hurricane, tornado, wildfire, wind, hail, freezing temps, etc.) with detailed steps that can minimize damage to their home. It usually follows that the more informed and prepared a homeowner is, the smaller the size of the claim.
Preventative maintenance for water and fire
Both first-time and veteran homeowners often fail to complete the routine maintenance that can reduce loss due to leaks, floods, fires and other, often-preventable situations. Digital home management platforms with AI can create a customized maintenance schedule that will send the homeowner a personal reminder for every task. Accompanying most reminders is a checklist of loss-prevention suggestions such as cleaning-out dryer ducts, pruning trees, clearing gutters and connecting downspouts to drains.
Leverage AI to become a trusted advisor
Every insurance company recommends a home inventory, yet most don’t provide the digital tools that make it easy for their policyholders to comply. In addition, many homeowners today are under-insured and unaware of the unique climate and weather risks their home faces – all of which sets up the potential for an adversarial agent/client relationship.
Fortunately, the latest digital and AI platform tools give you the chance to flip the script to become a “trusted advisor” to your clients on all things insurance, home protection and peace of mind.
Instant photo documentation and valuation of personal possessions and dwelling coverage
Homeowner AI instantly processes homeowners’ photos of every room in their home, documenting furniture, appliances, technology and personal possessions, as well as any receipts and warranties, to generate a detailed, line-item inventory of all assets and their replacement costs. This new data set can be shared in a trusted way to ensure homeowners are properly insured and in sync with their insurance provider.
Property specific climate and weather risk assessments
Homeowners can also use AI to receive a location-specific assessment of climate and weather risks for their specific property. The risk assessment provides a prioritized list of likely weather events and incremental insurance coverage needs beyond the basic policy that can increase revenue for the insurance business and peace of mind for the client.
Go beyond the policy to keep your clients for life
The insurance industry is myopic when it looks at a home as only an asset (or collection of assets) that needs to be insured – i.e., “Here is your policy and we sincerely hope you don’t use it to file any claims.” The disconnect is that consumers view their home as their largest financial asset and biggest expense. It needs to be financially managed, maintained, remodeled, and sold in the future. There exists a unique opportunity to engage your clients in a value-added digital/AI relationship that lasts as long as they own their home.
Home improvement and remodeling
Consumers spend billions every year on investing in their home. Digital homeowner AI platforms empower homeowners to budget for all their home projects, research the myriad of brand and product options; locate and hire contractors and other vendors; and track budgets, costs, warranties, permits and all other essential paperwork.
Financial insights and trends
Digital home management platforms automatically update consumers on home value, mortgage balance, home equity and total property- related costs. Homeowner AI takes that to a new level by providing forward-looking financial insights to help consumers make the best financial decisions about their single-largest investment.
Hurricanes and related disasters, and water and fire claims are increasing in frequency and intensity. Digital home management platforms with homeowner AI represent a transformational opportunity for both providers and their clients. Instead of being a liability, hurricanes and other natural disasters can be the impetus to digitally transform insurance professionals from a transactional, one-off service provider to a long-term “trusted advisor” throughout the homeownership experience.
Today’s carriers, brokers and agents can offer more client value than ever before while differentiating their business and ensuring more referrals and revenue streams.
